FUNCTIONAL DIVISIONS AND BOOKS OF ACCOUNTS MAINTAINED THEREIN

Considering the nature and spread of the general insurance business, the four subsidiaries of the General Insurance Corporation operate through their Head Offices, Regional/Area Offices, Divisions and Branches attached thereto. The most important part of the business operations comprises the issuance of policies for risks assumed and to indemnify the insured for losses to the extent covered by such policies. In financial terms these operations get translated into— (a) the receipt/recording of premium income; and (b) the recording and settlement of claims for losses. The business operations stated above are essentially confined to the divisional offices and the branches attached to these divisions. The accounting for these operations in these offices involve recording of premium income and provisions and payments in respect of claims under policies. Transactions related to operations at the branches are communicated for accountingthereof at the divisions. Generally, separate bank accounts are maintained for premium collections and for disbursement of expenditure. Normally, collections are transmitted to the relevant controlling office and the concerned account is not normally operated upon for expenditure etc. The branches of the divisions submit adequate information and evidence of transactions relating to their operations. The returns from the branches will include all transactions by way of documents relating to premium received, claims provisions and payments and operation of bank accounts. The following books of account/records are normally maintained at a divisional office : (i) Cash Receipt Book. (ii) Cash Disbursement Book. (iii) Dishonoured Cheque Register. (iv) State Cheque Register. (v) Daily Cash Balance Book. (vi) Claims Disbursement Book. (vii) Premium Register. (viii) Bank Transfer Journal. (ix) Journal. (x) Summary Books for incorporation of Branch Returns (Cash Receipt Statements, Cash Disbursement Statements and Premium Register after these are duly checked). (xi) General Ledger. (xii) Sub-Ledgers. (xiii) Register for Analysis of Management Expenses. (xiv) Cash Receipts, Cash Disbursement Vouchers and Journal Vouchers. (xv) Remittances Received Register. (xvi) Salvage Register. (xvii) Claims Recovery Register. (xviii)Stationary Register. (xix) Trunk Call Register.(xx) Assets Register. (xxi) Policy Stamp Register. (xxii) Excess/Shortage Register. (xxiii)Co-insurers Register. Other major areas of accounting involve accounting for investments, reinsurance and other administrative matters which are dealt with at the Head Office.